|America's independent, non-partisan advocate for overburdened taxpayers.||Home | Donate | RSS | Log in|
NTU urges all Representatives to vote “YES” on H.R. 6213, the “No More Solyndras Act.”
September 13, 2012
By Nan Swift
NTU urges all Representatives to vote “YES” on H.R. 6213, the “No More Solyndras Act.” This legislation will phase out the Department of Energy’s (DOE’s) substantially flawed Title XVII program, enacted by the Energy Policy Act of 2005.
The DOE has a bad track record when it comes to picking winners and losers in the marketplace. Thanks to a lack of oversight and mismanagement, taxpayers have lost hundreds of millions of dollars on bad “green energy” bets like failed solar company Solyndra, and there might be even more to come. It is important for Congress to act now to turn off the money spigot.
At its heart, the Title XVII program is a toxic mix of unsound economics, bad energy policy, and crony capitalism. For years, the market-distorting government loans have propped up industries, only for many companies to still fail, proving that no amount of easy credit can sustain an uncompetitive model indefinitely. If firms cannot demonstrate they are able compete in the open marketplace with other energy sources, DOE shouldn’t be exposing taxpayer funds to the same risks that private investors are avoiding.
It is disappointing that Republicans and Democrats have missed several opportunities terminate the program in its entirety, leaving taxpayers on the hook for billions of dollars in bad loans. While this bill will stop future applications, those already in the pipeline could still get federal backing from the same system that failed taxpayers with Solyndra, including a troubled $2 billion boondoggle called the U.S. Enrichment Corporation.
Still, NTU would also urge Congress support this important first step toward ending corporate welfare and reforming energy policy while encouraging future action to strengthen taxpayer protections from wasteful loan guarantees.
Roll call votes on H.R. 6213 will be included in our annual Rating of Congress and a “YES” vote will be considered the pro taxpayer position.If you have any questions, please contact NTU Federal Affairs Manager Nan Swift at (703) 683-5700